Bluestone Resources (TSXV: BSR; US-OTC: BBSRF) has tabled a feasibility study for its Cerro Blanco gold project in Guatemala that says the project would produce 902,000 oz. gold over an eight year mine life. It would cost an initial $196 million and achieve after-tax payback in 2.1 years.
The project has a $241 million after-tax net present value at a 5% discount rate and a 34% after-tax internal rate of return. It would produce an average 146,000 oz. gold over its first three years, generating $91 million in free cash flow per year.
The project would produce at $579 per oz. gold all-in sustaining costs which, according to Bluestone, places it in the bottom end of the lowest quartile of the global cost curve.
The project contains 3.44 million proven and probable tonnes grading 8.5 grams gold and 32.2 grams silver for 940,000 oz. gold and 3.57 million oz. silver
The project contains 3.44 million proven and probable tonnes grading 8.5 grams gold and 32.2 grams silver for 940,000 oz. gold and 3.57 million oz. silver.
The project contains an additional 1.3 million inferred tonnes at 8.09 grams gold and 23.58 grams silver for 357,000 oz. gold and 1.04 million oz. silver that Bluestone is trying to convert to the measured and indicated categories through ongoing infill drilling.
The company began phase two drilling at Cerro Blanco in November 2018, stepping out from known veins as well as upgrading resources. It expects to table an updated resource estimate in 2019’s third quarter.
Shares of Bluestone are currently trading at $1.50 with a 52-week range of $1.05 to $1.60. The company has a $95 million market capitalization.
(This story first appeared in The Northern Miner)
